Chain v. Ehrman

California Court of Appeal May 31, 1928 No. Docket No. 5479.Published

Before: Wood

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Holding. The court held that defendants ratified a lease signed by their agent without written authority by occupying the premises and paying rent, thereby estopping them from denying the lease's validity.

Issues

Whether a lease signed by an agent without written authority is enforceable against a principal who occupies the premises and pays rent under the lease.
Whether the issue of estoppel must be explicitly pleaded when evidence of ratification is admitted without objection at trial.

Disposition. affirmed

Quotations verified verbatim against the opinion

“Under these circumstances the trial court was justified in holding that defendants accepted the lease, occupied the premises thereunder and thereby ratified the action of their agent.”

“if, as was sought to be shown, defendant entered into possession of the land and held that possession under the lease, he is estopped to aver its invalidity”

[335]

WOOD (W. J.), J.,

pro

tem.

Plaintiff recovered a judgment in the sum of $710.50 which he alleged was due as rent for certain premises in the city of Bakersfield. From this judgment defendants appeal. The Bakersfield Tobacco Company occupied the premises in question in the first instance under a lease executed on January 22,1922, for a period of two years from February 15, 1922. This lease, which was signed by Gustave J. McGregor, then a partner of the Ehrmans in the company, contained a provision giving the lessee an option of renewal. The defendants Ehrman became successors to the interest of McGregor in the affairs of the Bakersfield Tobacco Company, which was a copartnership having its principal place of business in the city of San Francisco. On January 9, 1924, a new lease was executed by plaintiff’s assignor as lessor and the Bakersfield Tobacco Company as lessee, for a period of two years from February 15, 1924, at a monthly rental of $100 per month with option of renewal on the part of the lessees. This lease provided $300 should be paid at once for the first three months, and receipt of this sum was acknowledged in the lease. The instrument was signed, “Bakersfield Tobacco Co., By H. J. Freyschlag.” It was established that Freyschlag was general manager of the company at Bakersfield and that he reported to defendants the payment of the advance rent of $300 by a monthly trial balance. Defendants continued in the occupation of the premises after the expiration of the term fixed in the lease executed January 22, 1922, and until about November 15, 1924, at which time they removed therefrom. The judgment recovered by plaintiff is for rent due after November 15, 1924, under the lease dated January 9, 1924.

Defendants denied that they had executed the lease, claiming that Freyschlag was not authorized to sign for the company. They relied upon subdivision 5 of section 1624 of the Civil Code, which provides that an agreement for the leasing of real estate for a period longer than one year must be in writing, and if a written agreement be signed by an agent the authority of the agent must be in writing. Since it was not established that Freyschlag was authorized in writing, defendants contend that they were tenants at sufferance. Plaintiff claims that defendants oc

Chain v. Ehrman

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WOOD (W. J.), J.,

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